Actuarial valuation of earned leave

CMA TAPAN DHAR (Practicing Cost Accountant)   (272 Points)

31 July 2014  

Finacial year of our company is July to June. We credit Earned leave of Management staff on 1st April & of  Non managment staff on 1st January every year.

For arriving at Earned leave balances as on 30th June we deduct the Earned leave availed by each employee during April to June in case of Managment Staff & Jan to June in case of Non Managment Staff from the Opening leave balances of each employee.

Leave of Management staff is govrned by Co. Policy & in case of non management staff it is governed by Factories Act 1948  & we pay for the leave earned during the period April to June/Jan to June as the case may be in case of exiting employees.

My Query is whether leave earned duing April to June for Management staff & Jan to June for Non Management staff is to be computed & taken into consideration while arriving at leave balances as on 30th June for Actuarial valuation?